International aviation fuel 100% purely exempt from ETS

Federated Farmers Media Release  8 June 2010

As the New Zealand Emissions Trading Scheme (ETS) from 1 July, looks set to strip at least $1.527 billion from taxpayers, those Kiwis emigrating from New Zealand will be spared the ETS’ cost on the fuel their plane consumes.

 
“International aviation fuel into and from New Zealand is totally exempt from New Zealand’s ETS and that goes right back to the Kyoto Protocol itself,” says Don Nicolson, Federated Farmers President.
 
“Given international avgas is 100% purely exempt from the ETS, it’s farcical to suggest ‘reputation risk’ and a ‘trade backlash’ if we don’t embrace an all-encompassing ETS. 
 
“Our Government is creating an Efficiency Transfer Scheme from New Zealand’s farmers to our less efficient, but geographically closer, competitors.   
 
“It’s like transferring Dan Carter and Richie McCaw to the Georgian rugby team for the World Cup because it will help global rugby.  Kiwis wouldn’t stand for that and nor should they stand for the ETS as our country doesn’t produce 99.8 percent of the world’s emissions.
 
“The big economies and sectors, like international aviation and maritime transport, work in self-interest and efficiency.  New Zealand is behaving like the 97lb-weakling by obediently doing what world leaders say but not as they do.  Just look at Australia.
 
“Yet international aviation is the most efficient way to move people over long distances.  International maritime fuels, also exempt from Kyoto, represent the most efficient means to move cargo over vast distances.  Maybe our Government needs a definition of efficiency.
 
“Even Europe’s ETS, from where we’re told by MP’s and the media, a ‘consumer backlash’ would come, totally disregards 57 percent of its own emissions.
 
“Europeans find taxing the essentials of life, like food, an anathema.  It explains why the EU’s ETS excludes emissions from transport (21 percent of EU emissions), households and small business (17 percent), agriculture (10 percent), construction and waste (9 percent). 
 
“So our ETS makes it more costly to travel within New Zealand but not when it comes to jetting off to Cancun in Mexico, for the next big United Nations climate conference.
 
“As New Zealand’s farmers are facing thousands of dollars in added costs from 1 July, money many can ill-afford, it grates to hear Ministers spinning a line that the ETS’ cost on us is inconsequential.  But that’s an easy thing to say when you’re drawing a Cabinet Minister’s stipend,” Mr Nicolson concluded.
 
For further information contact:
 
Don Nicolson, Federated Farmers President,